People take information while filing ITR about how to calculate LTCG tax from profit while paying tax on selling lots. Capital gains tax can be easily availed on investments made one year before and two years after the purchase of the property. Before this, know what is LTCG tax and how to calculate it.
Tax on sale of plot:
On buying and selling any property, people pay some amount as tax to the government. While filing ITR, people adopt various methods to save tax. On the other hand, people who do not know how to pay tax on selling a plot, they may face problems in the future. What is LTCG tax? After knowing about how to calculate LTCG tax, you can save it. You also know everything about capital gains tax here.
What is LTCG tax:
LTCG tax is levied on various types of profits. LTCG is called Long Term Capital Gains. It is necessary to pay LTCG on the profits made in case of sale or transfer of any property. On the other hand, if we talk about those assets, then these include sale of house, bank FD, jewelry, stock market, property, car, NPS and bonds. LTCG tax liability is made on the profit made after selling all these things.
How to Calculate LTCG Tax:
It is necessary to calculate it before paying capital gains tax. There are many websites available to know how to calculate LTCG tax. Generally, short term capital gains tax is payable on the sale of a property as per the income tax slab rates. Apart from this, 3% tax is paid as cess tax. On the other hand, long term capital gains tax is applicable at the rate of 20% on profit made at the time of selling the property. There are many ways to save these taxes.
How to save capital gains tax:
There are various ways people adopt to save capital gains tax (LTCG). The easiest and most accurate way is to reinvest the profits to buy a new asset. Apart from this, you can invest in bonds, buying a new house, capital gains account scheme for saving LTCG tax. Let us tell you that tax is applicable on selling it after more than 36 days.
